Paraguay's government on Tuesday unveiled the "Auto familiar" plan, a joint venture with Brazilian manufacturers to sell new automobiles priced at $8,800.

The National Development Bank (BNF) will provide financing to buyers, providing them with 60-month loans carrying $158 payments to purchase family cars.

The plan was presented on the terrace of the Government Palace, where Paraguayan President Horacio Cartes and Brazilian Development, Industry and Foreign Trade Minister Marcos Pereira discussed the details.

Cartes said in a Twitter post that his administration had crafted the plan to make it easier to purchase vehicles assembled in Paraguay and Brazil.

"With financing and reasonable prices, the national automotive industry grows and benefits Paraguayan families, facilitating access to a 0 km #ConstruyendoElFuturoHoy," Cartes tweeted.

Paraguay and Brazil have been working together to bolster their automotive industries via the project, which offers eight different brands and some 500 models from Italy's Fiat, Germany's Volkswagen and US-based General Motors.

Paraguayan Industry and Trade Minister Gustavo Leite, who attended the launch, said the project would promote binational cooperation and integration of the assembly industries in Paraguay and Brazil.

The project will bolster Paraguay's trade with Brazil, Leite said.

Paraguayan Foreign Minister Eladio Loizaga, Public Health Minister Antonio Barrios and automotive industry representatives also attended the project's launch.